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5 Stocks to Watch Amid Continued Expansion in the Biotech Industry
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The year 2020 saw biotechnology companies gaining precedence as the world battled against the COVID-19 pandemic. Several companies joined the race for developing vaccines last year and many of them have already received authorization for emergency use. In fact, the United States recently approved its third vaccine for emergency use while in the U.K., two vaccines have already been approved.
Moreover, 2020 saw several other novel drugs being approved by the FDA. In fact, the FDA approved 53 new products in 2020 which is the second-highest in number in more than 20 years, as quoted in a Chemical & Engineering News article. However, despite a robust 2020, biotech companies seem poised to witness growth going forward.
Notably, per a report by Grand View Research, the global biotech market is estimated to witness a CAGR of 15.83% from 2021 to 2028. The market was valued at $752.88 billion in 2020. The report mentioned that the biotech market is being driven by favorable government initiatives due to the growth of the biotech industry, especially in developing economies like China and India. The report also stated that government initiatives are focused on aspects such as “modernizing the drug regulatory pathway, standardizing clinical studies, improving reimbursement policies, and speeding up the product approval process,” which are offering growth opportunities to the biotech market.
Per the report, the health application segment accounted for the largest share of 48.64% in 2020 and the trend is estimated to continue during the forecast period. Grand View Research stated that the growth in the segment can be attributed to the increasing prevalence of diseases. Moreover, the report stated that North America accounted for the largest share of the biotech market in 2020, accounting for 44.19% of the total market. Factors such as the presence of key players, R&D activities and high cost of healthcare contributed to the growth of the region. An increasing number of companies operating in North America are also receiving drug approvals and driving the biotech market.
Moreover, the advancements in technology should continue aiding the biotech industry. A report by Linchpin stated that in 2021, the advent of smart technology will lead to improvement in diagnosis and treatment with the help of medications. Moreover, the report stated that advancement in biotech is allowing researchers to focus on different life sciences fields like precision surgery, genetics and immunotherapy.
5 Biotech Stocks to Watch Out For
The biotech industry seems poised to continue its good run on the back of continued advancements in the field of research and subsequent speeding up of the regulatory approval process. This makes it a good time to keep a close eye on biotech names that can make the most of this potential going forward. We have selected five such stocks that carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bristol-Myers Squibb Company (BMY - Free Report) discovers, develops, licenses, manufactures and markets biopharmaceutical products worldwide. The company recently received approval from the FDA for OPDIVO (nivolumab) in Combination with CABOMETYX (cabozantinib) as the first line treatment for patients with advanced renal cell carcinoma. The Zacks Consensus Estimate for its current-year earnings increased 1.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 15.5%.
AbbVie Inc. (ABBV - Free Report) discovers, develops, manufactures and sells pharmaceuticals worldwide. The company offers HUMIRA used for the treatment of Crohn’s disease, SKYRIZI to treat moderate-to-severe plaque psoriasis in adults, and so on. The Zacks Consensus Estimate for its current-year earnings increased 2.6% over the past 60 days. The company’s expected earnings growth rate for the current year is almost 18%.
Novavax, Inc. (NVAX - Free Report) is a biotechnology company that focuses on the discovery, development and commercialization of vaccines to prevent serious infectious diseases and address health needs. The company's COVID-19 vaccine candidate is NVX-CoV2373, which recently demonstrated an efficacy of 89.3% in its phase 3 clinical trial in the United Kingdom. The Zacks Consensus Estimate for its current-year earnings increased 50.9% over the past 60 days. The company’s expected earnings growth rate for next year is 12.6%.
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) discovers, invents, develops, manufactures and commercializes medicines for treating various medical conditions worldwide. The company's products include the EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema, and so on. It also provides the Dupixent injection to treat atopic dermatitis in adults, and asthma in adults and adolescents. The Zacks Consensus Estimate for its current-year earnings increased 24.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 46.7%.
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) engages in developing and commercializing therapies for treating cystic fibrosis. Its pipeline includes VX-864, a second investigational small molecule corrector for the treatment of AAT deficiency, which is in phase 2 clinical trial and VX-147 that completed a phase 1 clinical trial for the treatment of APOL1-mediated focal segmental glomerulosclerosis, among others. The Zacks Consensus Estimate for its current-year earnings increased 1.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 9.1%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Shutterstock
5 Stocks to Watch Amid Continued Expansion in the Biotech Industry
The year 2020 saw biotechnology companies gaining precedence as the world battled against the COVID-19 pandemic. Several companies joined the race for developing vaccines last year and many of them have already received authorization for emergency use. In fact, the United States recently approved its third vaccine for emergency use while in the U.K., two vaccines have already been approved.
Moreover, 2020 saw several other novel drugs being approved by the FDA. In fact, the FDA approved 53 new products in 2020 which is the second-highest in number in more than 20 years, as quoted in a Chemical & Engineering News article. However, despite a robust 2020, biotech companies seem poised to witness growth going forward.
Notably, per a report by Grand View Research, the global biotech market is estimated to witness a CAGR of 15.83% from 2021 to 2028. The market was valued at $752.88 billion in 2020. The report mentioned that the biotech market is being driven by favorable government initiatives due to the growth of the biotech industry, especially in developing economies like China and India. The report also stated that government initiatives are focused on aspects such as “modernizing the drug regulatory pathway, standardizing clinical studies, improving reimbursement policies, and speeding up the product approval process,” which are offering growth opportunities to the biotech market.
Per the report, the health application segment accounted for the largest share of 48.64% in 2020 and the trend is estimated to continue during the forecast period. Grand View Research stated that the growth in the segment can be attributed to the increasing prevalence of diseases. Moreover, the report stated that North America accounted for the largest share of the biotech market in 2020, accounting for 44.19% of the total market. Factors such as the presence of key players, R&D activities and high cost of healthcare contributed to the growth of the region. An increasing number of companies operating in North America are also receiving drug approvals and driving the biotech market.
Moreover, the advancements in technology should continue aiding the biotech industry. A report by Linchpin stated that in 2021, the advent of smart technology will lead to improvement in diagnosis and treatment with the help of medications. Moreover, the report stated that advancement in biotech is allowing researchers to focus on different life sciences fields like precision surgery, genetics and immunotherapy.
5 Biotech Stocks to Watch Out For
The biotech industry seems poised to continue its good run on the back of continued advancements in the field of research and subsequent speeding up of the regulatory approval process. This makes it a good time to keep a close eye on biotech names that can make the most of this potential going forward. We have selected five such stocks that carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bristol-Myers Squibb Company (BMY - Free Report) discovers, develops, licenses, manufactures and markets biopharmaceutical products worldwide. The company recently received approval from the FDA for OPDIVO (nivolumab) in Combination with CABOMETYX (cabozantinib) as the first line treatment for patients with advanced renal cell carcinoma. The Zacks Consensus Estimate for its current-year earnings increased 1.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 15.5%.
AbbVie Inc. (ABBV - Free Report) discovers, develops, manufactures and sells pharmaceuticals worldwide. The company offers HUMIRA used for the treatment of Crohn’s disease, SKYRIZI to treat moderate-to-severe plaque psoriasis in adults, and so on. The Zacks Consensus Estimate for its current-year earnings increased 2.6% over the past 60 days. The company’s expected earnings growth rate for the current year is almost 18%.
Novavax, Inc. (NVAX - Free Report) is a biotechnology company that focuses on the discovery, development and commercialization of vaccines to prevent serious infectious diseases and address health needs. The company's COVID-19 vaccine candidate is NVX-CoV2373, which recently demonstrated an efficacy of 89.3% in its phase 3 clinical trial in the United Kingdom. The Zacks Consensus Estimate for its current-year earnings increased 50.9% over the past 60 days. The company’s expected earnings growth rate for next year is 12.6%.
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) discovers, invents, develops, manufactures and commercializes medicines for treating various medical conditions worldwide. The company's products include the EYLEA injection to treat wet age-related macular degeneration and diabetic macular edema, and so on. It also provides the Dupixent injection to treat atopic dermatitis in adults, and asthma in adults and adolescents. The Zacks Consensus Estimate for its current-year earnings increased 24.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 46.7%.
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) engages in developing and commercializing therapies for treating cystic fibrosis. Its pipeline includes VX-864, a second investigational small molecule corrector for the treatment of AAT deficiency, which is in phase 2 clinical trial and VX-147 that completed a phase 1 clinical trial for the treatment of APOL1-mediated focal segmental glomerulosclerosis, among others. The Zacks Consensus Estimate for its current-year earnings increased 1.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 9.1%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>